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  • Tax

    Which tax forms to fill in?

    Hi all

    I am in regular employment and last year I was able to purchase a buy-to-let. I have to complete tax returns and just wanted to confirm whether I have to complete form SA102 as well as completeing SA105? I am asking because although I have a £1400 loss on  6 months BTL (due to setup costs etc), by completing the Employment form the summary tells me that I will have to pay £700 + in tax.

    I realise that there isn't sufficient info here for anyone to give any tax advice etc. it is simply whether I have to complete the Employment section or not.

    Many thanks for your help

    Albie

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    Hi

    Yes when you complete a tax return you must enter all sources of income. It sounds as though you have underpaid tax on employment income in the year which may be due to an incorrect PAYE code, employer error! etc etc

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    Hi Alan,

    Yes, when completing your tax return, all taxable income sources must be reported and therefore you would need to include your employment income and tax deducted.  Probably a silly question, but I presume you have included the PAYE deducted on your salary within your tax return?

    You will of course not pay any tax on your property if there is a loss.  Your payslips should show the tax code which is currently being applied to your employment, and if this is not accurate, then this may result in an underpayment such as what you mentioned.

    It could be that your employer has applied the incorrect code, or if you have recently changed employer, then discrepancies can sometimes arise here too.

    Hope that helps and best wishes,

    RITA4Rent

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    RITA4Rent (Rental Income Tax Advisors)

    Specialists in Landlord Taxation

    Recommended tax advisors of the Residential Landlords Association

    Follow us on Twitter @Rita4Rent

    clients (at) rita4rent (dot) co (dot) uk

    http://www.rita4rent.co.uk


    As above, definitely do tax return: It's the only way you can "carry forward" those £1,400 losses to reduce tax you pay in future years.

    Suggest you buy a book on property tax (there are more than 10 taxes a landlord may pay, 'taint just income tax), it will save you more than it costs.

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    Apologies for the delay in responding.

    Thanks to you all for your comments and for sure i will be buying the books!

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